Friday saw a little decline in gold prices, but they were expected to rise monthly ahead of US inflation statistics that will give fresh clues about the Federal Reserve’s rate-cutting trajectory. As of 0818 GMT, spot gold was down 0.1% at $3,414.07 an ounce. In August, the price of gold increased by 3.6%, reaching its highest level since July 23 on Thursday at $3,423.16.
In addition to the dollar’s modest increase, gold is experiencing the gravitational pull typically associated with significant, round figures. Before PCE data, markets seem hesitant to allow gold to deviate much from the psychological $3,400 level, according to Han Tan, chief market analyst at Nemo.Money. Although the dollar increased, a 2.2% monthly decline was anticipated. Benchmark 10-year rates were on track for a monthly decline but were just above a two-week low reached on Thursday.
Bullion bulls should be able to maintain their position above $3,400 as long as the inflation increase is not more severe than anticipated. However, spot gold may once again fall into the sub-$3,400 range if the PCE prints below market expectations for Fed rate cuts this year, Tan stated. Generally speaking, non-yielding gold does well when interest rates are low. On Thursday, Fed Governor Waller intensified his advocacy for lowering short-term borrowing costs in the US by stating that he would back a rate decrease the following month.
Also Read:
US-India Trade Negotiations That Were Set for August 25–29 Were Canceled
Two Ladies are Fined Dhs1.750 Million by an Abu Dhabi Court for Selling Rental Gold
About Author
